1.3 Why Payments Fail Without Cryptographic Identity

Payments are not just transfers of value — they are statements of intent.

Most payment systems today:

• Are custodial

• Depend on intermediaries

• Use fraud engines after authorization

• Assume reversibility and disputes

This model works only because:

• Humans are slow

• Transactions can be reversed

• Risk can be externalized

Why this breaks down

Modern systems require:

• Automation

• Global settlement

• API-driven execution

• AI agents acting independently

Without cryptographic identity:

• You cannot prove who authorized a payment

• You cannot prove intent

• You cannot achieve non-repudiation

Fraud detection becomes a guessing game.

PTERI binds identity, intent, and payment authorization into a single cryptographic action.

There is no separate login, approval screen, or trust assumption.